Columbia Sportswear Q1 net sale up 13 percent

Net sales at Columbia Sportswear increased 54.9 million dollars, or 13 percent in the first quarter. Operating income increased 24 percent to a first-quarter record 44.1 million dollars. Operating margin expanded 80 basis points to 9.2 percent and net income increased 19 percent to 26.5 million dollars, or 0.37 dollar per diluted share. The board of directors approved a quarterly dividend of 0.15 dollar per share.

For fiscal year 2015, the company expects high single-digit net sales growth, including approximately 4 percentage points of negative effects from changes in currency exchange rates. Mid-teen percentage growth in operating income is anticipated, resulting in full year operating margin of approximately 10.2 percent of net sales. Net income is expected to be between 154 million dollars and 161 million dollars, or 2.15 dollars to 2.25 dollars per diluted share.

Commenting on the company’s performance, Tim Boyle, Columbia's Chief Executive Officer, said, “2015 is off to a strong start, building on the momentum we created in 2014 behind the Columbia, Sorel and prAna brands. We are experiencing exceptional sell-through in North America through the first half of the spring season and our European business has returned to growth. Sorel is poised for a very strong second half and full year net sales of more than 200 million dollars, while prAna remains on pace to deliver annualized growth of more than 20 percent.”

First quarter US net sales increased 42.6 million dollars, or 18 percent, including 30.8 million dollars of incremental prAna net sales. Net sales in Canada increased 7.4 million dollars, or 28 percent, including 4 million dollars of incremental prAna net sales and a 12 percentage point negative effect from changes in currency exchange rates. Latin America/Asia Pacific (LAAP) region net sales decreased 3.7 million dollars, or 3 percent, including a 6 percentage point negative effect from changes in currency exchange rates. Europe/Middle East/Africa (EMEA) region net sales increased 8.6 million dollars, or 22 percent.

Columbia brand net sales increased 25 million dollars, or 7 percent, to 401 million dollars. Sorel brand net sales increased 0.5 million dollars, or 4 percent, to 13.4 million dollars, whereas Mountain Hardwear net sales decreased 7.3 million dollars, or 23 percent, to 25.1 million dollars. Incremental prAna net sales totaled 37.1 million dollars.

Apparel, accessories and equipment net sales increased 45.6 million dollars, or 13 percent, to 399.3 million dollars, and footwear net sales increased 9.3 million dollars, or 13 percent, to 79.7 million dollars.